Presentation on theme: "Presented by: Edward D. Agostinelli Sr. Seraph Energy LLC."— Presentation transcript:
Presented by: Edward D. Agostinelli Sr. Seraph Energy LLC
Why Seraph Energy Was Formed 1. The State of Pennsylvania is sitting one of the largest Natural Gas Reserves in the World 2. The cost of Diesel Fuel is soaring 3. Trucking Fleets are looking for alternatives 4. Diesel-to-Natural Gas Engine Conversion Technology is available and has been used all over the world but can not easily be used in the United States due to the EPA’s “Anti Tampering Provisions”. 5. Fleets are reluctant to convert to Natural Gas - limited number of fueling stations 1. Gas suppliers are slow to set up CNG filling stations - not enough vehicles to support the facility
Seraph Energy LLC 1. “Catch 22” Fleets will not consider converting> no fueling stations Fuel suppliers will not invest in stations > no NG vehicles 2. The only logical approach was to form affiliations 3. Technology Provider - Omnitek Engineering 4. LNG & CNG Fuel Suppliers - LNG Energy Solutions 5. This enables Seraph to approach any customer and offer a turnkey solution - Conversions plus Fuel
Initial Objectives 1. Develop EPA approved conversion kits – first for the Navistar DT This engine has already been successfully converted by Omnitek in other Countries 3. Pa. DOT runs a large fleet of Dump Trucks, many are DT A large number of Bus Fleets are powered by the DT Pennsylvania alone has in excess of 20,000 School Buses - School Districts are burdened by high fuel costs - Diesel engine emissions prohibits idling on school property 5. DT466 traditionally not a “Long Haul” vehicle. This is advantageous until the fueling infrastructure is significantly expanded
Steps To Be Taken 1. Secure distribution rights to technology, which is already developed and proven 2. Apply to EPA for a waiver / pre-conversion emissions test / convert Diesel DT466 / post-conversion emissions test / submit to EPA 3. EPA listing permits use to convert “Outside Useful Life Engines” 4. Next step is to test the engine at an EPA recognized emissions testing laboratory. This certification includes “Intermediate Age Vehicles” (Certificate of Conformity) 5. Apply to IRS to make conversion kit eligible for “Conversion Credits”, should Congress reenact the law that expired in This significantly reduces the cost to consumers -
T. Boone Pickens, “We must get away from foreign oil and natural gas is the best alternative to diesel fuel.” Sergio Marchionne, CEO of Fiat, “Natural gas is the only real immediate alternative to petrol.” Infrastructure: July 11, 2011(Reuters) – Chesapeake Energy Corp plans to spend as much as $1 billion over the next decade investing in companies and technologies to replace gasoline and diesel with fuels derived from abundant natural gas. How do we create demand for U.S. natural gas? Facts Economics of (increased) Supply and (low) Demand has pushed natural gas prices to historic lows!
Demand Pent-up demand for NG in form of 8,000,000 heavy-duty trucks A Class 6 Natural Gas-powered truck driving 60,000 miles per year replaces 10,000 to 15,000 gallons of Diesel with domestically produced natural gas and saves $20,000 to $30,000 per year A Class 8 Natural Gas-powered truck saves even more Market Drivers: - High price of diesel - Natural gas price at historic low - Reducing dependence on foreign energy - Climate change Natural gas: - Made in America - NG up to 60% lower cost - NG 30% lower CO2 emissions - Infrastructure is rapidly developing
Options How to put millions of natural gas trucks on U.S. roads? The Alternative New Natural Gas Trucks - Very high cost - Engine manufacturers no capacity - 150,000 new HD vehicles annually only 6,000 are NG The Solution Any diesel engine can be converted to natural gas, at a fraction of the cost of a new natural gas engine. Proven technology assures optimal performance and lowest emissions.
Given their long service life of up to 20 years, diesel engines are routinely overhauled - and every year a few hundred thousand engines are overhauled Infrastructure, knowledge-base and capacity exists Engine conversion, not unlike an engine overhaul Using Diesel-to-Natural Gas conversion kits, engines are “overhauled” into natural gas engines The difference in cost to “overhaul” or “convert” is minimal Conversion Options
Omnitek’s patented technology guaranties optimal performance and lowest emissions. Conversion of Class 6 Truck Engine Conversion $18,000 CNG Tanks $10,000 Total Cost $28,000 Saving $2,000 per month in fuel costs gives a Rate of Return of 14 month. Proven Technology Conversion/Overhaul Steps ‐ Disassemble engine. ‐ Install special NG pistons. ‐ Install NG valves and seats. ‐ Modify cylinder head for spark plugs. ‐ Install engine management system. ‐ Install NG fuel storage tanks. Omnitek has validated the Diesel-to-Natural Gas Engine Conversion Technology with over 5,000 engine conversions worldwide!
Growing domestic supply such as the Marcellus Shale Gas Field has led to oversupply Low demand for natural gas has reduced the cost Pent-up demand for natural gas in form of 8 million heavy-duty trucks - 150,000 new trucks are sold every year - only 6,000 are natural gas trucks 200,000 diesel engines are overhauled every year - Viable option: “overhaul” engines into natural gas engines Engine conversions make economic sense and is a viable option to new NG Vehicles Diesel-to-natural gas engine conversions will increase the NG vehicle population in the shortest amount of time To Summarize - Creates Demand for Natural Gas -
CONTACT: Edward D. Agostinelli Sr., President Seraph Energy LLC